Do you know what potential buyers are asking themselves when they look at your property?
We can anticipate the basics: Will they like the kitchen? Are there enough bathrooms? But what about the underlying questions every homeowner wants to know?
By now, we know that you make money when you buy and you realize that money when you sell. Easy. If you want to fully actualize all the money you can, consider some of the questions your potential buyers will have in mind when touring all the hard work you’ve made happen.
The more you can anticipate a buyer’s needs, the better you can work those into your repair plans.
But with so many various needs and demographics to consider, how do you cater to the desires of others in a way that helps you sell a house faster without going over budget and cutting into profit margin?
Can you have your cake and eat it too?
There are a handful of questions that most buyers will consider regardless of the neighborhood, ideal buyer, and price point.
Let’s count them down!
10. What about the seller’s disclosure?
Despite how a house looks, many buyers will want to know if there’s anything they need to watch out for. An inspection will show off all the properties flaws, but you may run into a buyer who wants to know what you know as soon as you know it. For instance, if there was an old septic system buried in the backyard that doesn’t affect the house’s current operation but may impact the buyer’s decision on putting in a pool someday, they may want to know.
9.What inspections do we need?
Speaking of inspections, many buyers will do multiple checks on a property; anything that the original inspector recommends. If there’s an issue in the fireplace, an inspector will recommend a professional opinion. Any problems could result in a delayed closing and further inspections. Though these things happen, and you can’t anticipate every problem, it’s worth considering what could result in future repairs for the home buyer before you put the property on the market.
This is especially true if your home buyers are using a picky lender (such as a VA loan) who requires certain items to be fixed before securing the mortgage. Have a basic understanding of codes–what height should porch steps be? Where do you need handrails? Does the bathroom vent go through the roof or stop in the attic creating possible mold problems in the future? It never hurts to know.
8. Has the home ever had mold?
There are some states where the question won’t even cross the home buyer’s mind. But in areas of heavy moisture or storm history, people will want to know. It’s assumed that a real estate investor who has flipped a property will know better than anyone whether there is mold or not. After all, very few people see behind the drywall. But what if the job requires only a few lipstick patches like new carpet and fresh paint? You may not know if there’s a problem.
It is also assumed–because there’s a rotten apple in every bunch–that some investors cut corners. Though you and I would never dream of doing unsafe, less-than-quality work, some people have been burned and word gets around. If a potential buyer asks for an inspection or the home’s history, be prepared. Buyers may also ask about radon, so be prepared if with any applicable reports you may have.
7. Why is this house for sale?
There are so many ways a potential buyer will know the house they’re viewing looked different before. It’s possible they know the neighborhood and saw the house in its distressed condition, or perhaps they’ve pulled buyer history. And usually, the beautifully staged home gives away that the property isn’t lived in at the time of sale. But buyers often want to know a little about the house’s history and why it’s for sale. This will often work in your favor as the desire for fresh upgrades is always on the rise.
6. Have all the safety features been installed?
With new builds and gutted properties, you or the contractor could overlook small details like working smoke and carbon monoxide detectors in all recommended places. Though this should never make or break a sale, you should catch the missing devices in the BLUE TAPE INSPECTION.
Want a checklist of all the Blue Tape Inspection points to look for before paying your contractor’s final bill?
CLICK HERE for a detailed list!
5. What are the zoning guidelines?
Although this may be more clear in some neighborhoods than others, buyers will often want to know if it’s possible to split the property into a multi-family home in the future or whether other houses down the street have been turned into insurance offices. Although this won’t be as important to some as to others, it could be a factor in the purchasing decisions of others. Because this effects other aspects–such as the home value and comps–you should already know the zoning and be prepared to answer any questions that arise.
4. Who are the neighbors?
This is one of the most important non-home related questions a potential buyer will ask. It’s also a question they won’t likely ask YOU directly (or the real estate agent); they’ll observe. Although you can’t control who lives next door or behind your investment property, you can make improvements to the property to compensate. If the neighbors breed dogs that are thought to be aggressive, you may consider putting in a privacy fence.
3. Does this house have everything I need?
It’s true that you can’t anticipate the needs of every buyer; that’s why houses vary so vastly. What a young couple just starting out in life needs is different than what a large family with an aging parent to care for does. You don’t have a magic ball, but you can look at trending desires; wider hallways to support both strollers and wheelchairs, a master suite on the same level as the living space on to avoid regular stair use, outdoor space in warm areas and additional parking for boats in lake towns. But how do you know what demographic will purchase your property?…
2. What neighborhood factors should we consider before making an offer?
If the neighborhood is nice but has mediocre schools, you can assume the street draws an older demographic and can plan your design and features accordingly. If the community has a plethora of trendy shops and startup tech companies, you’ll likely be selling to millennials buying their first or second home. There isn’t much you can do about the whole area, but you can make the property work for those who are most likely to purchase the property.
Understanding factors such as where the nearest stores are, if there’s public transportation or highways nearby, and what the local parks are like can help you understand what your ideal buyers look like. Though we live in blended societies, buyers will want to know what the area has to offer, who lives down the street, what the noise levels will be, and most importantly…
1. What’s the crime level?
Safety is vital! An interested buyer will look this up online or have their agent pull reports. Finding out the crime rate, area registered offenders, and more is just a click away. Although you can’t control these factors at the time of sale, you can consider them at the time of purchase and decide if the current quality of the area crime rate will affect your selling potential.
Remember the cliche that “crime has no zip code.” Anything can happen anywhere. Fortunately, most buyers won’t look at a house in a neighborhood they wouldn’t want to live in, so it’s safe to assume most of the leads you have touring the home will already be okay with the community in which it resides, but it’s always a factor to consider.
When you can anticipate the needs of the buyer and work any plans you have for the house around the most important ones, you have a better chance of selling a property fast.
However, none of these factors will matter as much as doing a quality job without cutting corners, hitting all the safety requirements, and pricing the property right. When you do your best to create a house that anyone could call home and provide a neutral slate upon which anyone could build their life, you’ll sell as well as the market allows.
Want to increase your odds of selling faster? We can help! Call us at (800) 473-6051 to learn what program will best fit your needs. Not everyone is ready for a coach or one-on-one training, but with events, home study courses, and certifications at your finger tips, why struggle along on your own?
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
Follow me on Twitter: @CogoCapital and @LeeArnoldSystem
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